01—Abstract
Summary
Summary of the 8-K filed October 21, 2025. Cited figures are marked; the original filing is the authoritative source.
GE Aerospace (General Electric Company) reported third-quarter 2025 results on October 21, 2025, with strong top-line and earnings growth and a raised full-year outlook across the board.
Total GAAP revenue rose 24% to $12.2Ba and adjusted revenue rose 26% to $11.3B, while GAAP profit grew 33% to $2.5B and adjusted EPS grew 44% to $1.66. Free cash flow reached $2.4B, up 30%, and represented roughly 134% conversion. Total orders were $12.8B, up 2%.
Commercial Engines & Services drove the quarter, with revenue up 27%, services up 28%, and operating margin expanding 170 bps to 27.4%. Defense & Propulsion Technologies revenue grew 26% and operating margin expanded 380 bps to 13.6%, though orders fell 5% on timing. Management raised 2025 guidance: adjusted revenue growth is now high-teens (from mid-teens), operating profit is $8.65b-8.85B (from $8.2-8.5B), adjusted EPS is $6.00-6.20 (from $5.60-5.80), and FCF is $7.1-7.3B (from $6.5-6.9B).
The company credited material input from priority suppliers up more than 35%c year over year, which lifted engine deliveries (LEAP deliveries up 40%) and services output. Investors should note that the filing furnishes the earnings release under Item 2.02 rather than filing it, and that adjusted (non-GAAP) metrics exclude insurance operations, restructuring, separation costs and gains/losses on dispositions, so GAAP results should be weighed alongside them. The quarter also included new engine wins, such as Korean Air's order for 103 Boeing aircraft with GEnx, GE9X and LEAP-1B engines, an expanded Cathay Pacific GE9X commitment to more than 70 engines, and a new BETA Technologies partnership on a hybrid electric turbogenerator.
Board member Wesley G. Bush was also elected effective December 1, 2025.
02—Key points
Key Highlights
- Total GAAP revenue rose 24% to $12.2B; adjusted revenue rose 26% to $11.3B, led by Commercial Engines & Services.
- GAAP profit grew 33% to $2.5B and continuing GAAP EPS rose 31% to $2.04; adjusted EPS grew 44% to $1.66.
- CES services revenue grew 28%, with internal shop visit revenue up 33%, and CES operating margin expanded 170 bps to 27.4%.
- Free cash flow reached $2.4B, up 30%, with conversion of about 134%; year-to-date FCF is $5.9B.
- 2025 guidance raised across the board: adjusted revenue growth now high-teens, operating profit $8.65-8.85B, adjusted EPS $6.00-6.20, and FCF $7.1-7.3B.
- Defense deliveries rose 83% and LEAP deliveries hit a record, up 40%, supported by priority supplier material input up more than 35%.
- Orders were $12.8B, up 2%, though DPT orders fell 5% on timing and CES equipment orders were affected by timing.
03—Questions
Frequently Asked Questions
How strong was GE Aerospace's Q3 2025 performance relative to the prior year?
Performance was strong. GAAP revenue grew 24%, GAAP profit grew 33%, and adjusted EPS grew 44%. Growth was driven mainly by services and higher engine deliveries in Commercial Engines & Services, with Defense & Propulsion Technologies also contributing.
Why did GE Aerospace raise its 2025 guidance?
Management pointed to year-to-date results and fourth-quarter expectations, along with improved engine output from higher material input from priority suppliers. Services revenue growth expectations for CES were raised to low- to mid-twenties, and DPT's operating profit outlook was narrowed upward.
Are the adjusted (non-GAAP) figures comparable to GAAP results?
Not directly. Adjusted metrics exclude run-off insurance operations, restructuring and other charges, separation costs, goodwill impairments, and gains or losses on dispositions. Investors should review the reconciliation tables and consider GAAP figures alongside adjusted ones, since GAAP results include these items.
Is there any risk to the strong quarter that investors should watch?
Orders were only up 2% overall, DPT orders fell 5% on timing, and the company cites risks including supply chain constraints, product quality or durability issues, geopolitical developments, tariffs, and run-off insurance and Bank BPH capital needs. The guidance is also forward-looking and subject to those uncertainties.
What do the new engine wins and partnerships mean for future growth?
Korean Air's order for 103 Boeing aircraft with GEnx, GE9X and LEAP-1B engines, plus the expanded Cathay Pacific GE9X commitment to more than 70 engines, support long-term services and equipment revenue. The BETA Technologies partnership on hybrid electric turbogenerators is an early-stage move toward hybrid electric flight.
04—Continue